Six months after private equity firm Modella Capital purchased WH Smith's high street arm, its replacement, TG Jones, is failing to capture the hearts and wallets of shoppers. Despite promises of investment, customers report noticing little difference in stores, with many lamenting the loss of a familiar brand.
A Familiar Feeling, But Not the Same Vibe
In the Hertfordshire market town of Hitchin, the sentiment outside the local TG Jones store is one of indifference. Gillian Parsons remarked that the layout and product range seem identical to the old WH Smith. "Even the branding is similar," added another shopper, Jazz Minhas, with some customers not even realising the name above the door had changed due to the continued use of a similar blue colour scheme.
However, the emotional connection has frayed. Parsons, who fondly recalled saying she was "popping down to Smiths," stated she could never imagine using the phrase "popping to Jones's." This nostalgia for the 233-year-old brand highlights the challenge facing the new owner.
Modella's Ambitious Plans Meet High Street Reality
Modella Capital, which also owns Hobbycraft and the UK arm of Claire's, bought the high street business for up to £40 million in June 2023, with £12 million knocked off the price due to softer trading. The deal separated it completely from WH Smith's travel retail arm, which retains the original name and stock market listing.
In presentations to landlords, Modella outlined a vision to make TG Jones the "hub of the high street," aiming for 500 outlets. Plans include expanding post office and banking services and integrating sections from its other brands, like Claire's and Hobbycraft, as well as partner Toys R Us. Toys R Us sections are already in 115 stores, with ambitions to exceed 250.
Yet, tangible change has been slow. Only 14 of the 456 stores have been refurbished so far, with 10 more definitively planned. Furthermore, 24 stores have closed since the deal was first announced, including nine after its completion, continuing a closure programme begun by WH Smith.
Shoppers Seek Value as Costs Bite
With the UK high street facing a difficult Christmas period, shoppers are clear that more must be done to attract them. Jon Wright, outside the Hitchin store, criticised the chain's identity, saying, "It doesn't really know what it is." He expressed a desire for more arts materials and stationery, noting that books and toys can be found cheaper elsewhere.
This search for value is paramount. Sisters Tracy Ward and Lisa Bierton said they find it more convenient to shop at supermarkets or cheaper retailers for cards and gifts. "People don't tend to get cards as often, as a stamp costs more than the card these days," Ward noted, highlighting the pressure of high energy and grocery bills.
Retail experts suggest a more radical restructuring may be imminent. One property expert believes Modella will act in July 2024, once a 12-month prohibition on such steps from the WH Smith deal expires. With many stores borderline profitable, store closures remain likely, with one insider suggesting as many as 100 could be at risk.
The Uphill Battle for Relevance
In towns like Stevenage, the TG Jones store appears almost unchanged from its WH Smith days, potentially marking it as a site under threat. Shoppers like Wayne Garland, 49, now seek bargains at Poundland, citing the cost-of-living crisis. Marion and Craig Herbert echoed this shift, noting they now do "quite a bit online."
The challenge for TG Jones is stark: to evolve from a legacy brand's shadow into a modern, relevant high street destination. While Modella's long-term plans are expansive, the immediate task is convincing sceptical shoppers that the change is more than just a name on the door.
